Residential Landlords: Are you ready for Making Tax Digital (MTD)?

Making Tax Digital (MTD) for Income Tax Self-Assessment is fast approaching, and many residential landlords with qualifying income over £50,000 (based on the 2024-2025 tax year) will be required to maintain digital records of income and expenses using HMRC-recognised software. As well as an annual tax return, landlords must submit quarterly updates to HMRC

If you haven’t started preparing yet, now is the perfect time.

What does MTD mean for landlords?

•  Digital record-keeping for rental income and expenses
• Quarterly updates sent to HMRC (instead of one annual return)
• A final end-of-period declaration each year
• Software-based submissions (spreadsheets alone won’t be enough)

Practical steps you can take now:

• Review how you currently track rental income and expenses
• Move away from paper records where possible
• Choose MTD-compatible software that fits your portfolio size
• Start keeping records digitally so the transition is smooth
• Speak to your accountant early to plan ahead

Examples of MTD-compatible software:

• Xero
• QuickBooks
• Sage
• FreeAgent
• Landlord-specific tools such as Hammock or Landlord Vision

(The right choice depends on how many properties you own and how hands-on you want to be.)

Benefits & opportunities of MTD:

• Better visibility of your rental profits throughout the year
• Fewer surprises when it comes to tax bills
• Improved accuracy and fewer errors
• Time savings once systems are set up
• A more modern, streamlined way of managing your property finances

MTD isn’t just a compliance change – it’s a chance to get clearer, cleaner, and more confident about your rental income.

For further information please click here:
Making Tax Digital for Income Tax - HMRC guide